February 12, 2025

Applications Available for J-51 Tax Abatement Program to Rehab and Preserve Affordable Housing. 

New J-51 will also help building owners go green, cut carbon emissions, and comply with NYC’s climate laws. 

New York, NY – Application materials are now available online for projects to submit for the newly reformed J-51 program, now named J-51 R, a key tool in the City’s efforts to support rehabilitation and carbon emissions reduction of rent-regulated, cooperative, and condominium buildings. The New York City Department of Housing Preservation and Development (HPD) opened applications this week, kicking off a three-month period for owners to apply. 

“A fundamental strategy in tackling the housing crisis is housing preservation, and J-51 is a critical tool in our toolbox for making safe, affordable, and high quality building upgrades," said First Deputy Mayor Maria Torres-Springer. "The renewed J-51 R meets the moment by supporting building owners to make investment in new and sustainable building systems, all while keeping homes affordable for existing tenants."

“Every New Yorker deserves a safe, well-maintained home they can afford, and J-51 helps make that possible,” remarked HPD Commissioner Adolfo Carrion Jr. 

By giving building owners the opportunity to repair roofs, upgrade heating, and make essential improvements, without increasing rents, or maintenance charges, the City is making sure that New York City’s buildings stay well-maintained, its neighborhoods remain stable, and its residents aren’t forced out of their homes or communities by rising housing costs.  

"J-51 is one of our most important tools for ensuring the health of our housing.  Every New Yorker deserves a safe, well-maintained home they can afford.  The new J-51 helps make that possible,” said HPD Commissioner Carrion. “This program gives owners the support they need to make essential upgrades without putting the burden on tenants. By investing in energy efficiency and long-term resiliency, we’re making sure New Yorkers can live in safe, high-quality homes for generations to come.”  

Eligible improvements include major capital repairs such as: 

• Roof replacements, façade repairs, and structural stabilization 
• Heating, plumbing, and electrical system upgrades 
• Energy efficiency improvements that lower operating costs for tenants and owners 

Preserving Housing and Keeping Housing Costs Affordable 

J-51 plays a critical role in maintaining the long-term health of New York City's aging housing stock. Since 2009, this tax relief program has helped rehabilitate more than 3,200 buildings, protecting the rent levels and livability of over 143,000 homes. With the passage of local enabling legislation in December 2024, HPD is now making the updated version of J-51, “J-51 R”, available to property owners and tenants. 

The newly reformed J-51 R program builds on this legacy by: 

• Providing a property tax abatement that helps finance essential repairs with an updated schedule of costs 
• Supporting rent-regulated buildings, co-ops, and condos in making long-term investments 
• Helping owners comply with sustainability mandates, including Local Law 97 
• Preventing owners from passing costs onto tenants through Major Capital Improvement (MCI) increases 

Promoting Sustainability and Energy Efficiency 

The updated J-51 program also includes incentives to help property owners meet the City’s ambitious climate goals while improving housing quality.  

"J-51 will make it easier for owners of low-cost co-ops and condos, many of which are located in disadvantaged communities, to pay for energy upgrades - creating healthier, cleaner buildings across the city,” said Mayor’s Office of Climate & Environmental Justice Executive Director Elijah Hutchinson. “As our EJNYC Report shows, these neighborhoods deserve access to safe and healthy housing. This program makes it possible by prioritizing the resources needed in a way that's affordable for owners and tenants, showing that climate action can take place at any level, no matter your income." 

Property owners and managers will now be able to use J-51 for energy-efficient upgrades that support compliance with Local Law 97, helping to both reduce carbon emissions and lower energy costs. Such improvements can include: 

• Building Envelope & Insulation: Air sealing, high-performance windows, and insulation upgrades 
• Heating & Hot Water System Upgrades: Modernized heating systems, heat pumps, and energy-efficient hot water heaters 
• Electrical System Modernization: Upgraded electrical capacity to support energy-efficient appliances and electrification 

Protecting Tenants and Strengthening Oversight 

J-51 R program updates also include enhanced tenant protections and stronger oversight to ensure compliance with rent stabilization laws: 

• Buildings receiving J-51 benefits must remain rent-stabilized during the benefit term. 
• Units that became rent-stabilized due to J-51 cannot be deregulated during the benefit term or for the duration of any tenancy that began while the benefit was in effect. 
• HPD has expanded enforcement mechanisms to prevent misuse of the program and protect tenants. 
• Owners may not apply for MCI rent increases for work covered under J-51. 

Eligibility and Application Process 

The following properties are eligible for J-51 R benefits and encouraged to review the application materials and apply:  

• Rental projects where at least 50% of units are rent-regulated with rents below 80% of the Area Median Income (AMI) or rental projects receiving substantial governmental assistance (SGA)  
• Co-ops & Condos where the assessed value per unit does not exceed $45,000. 
• Other regulated buildings operated as Mitchell-Lamas or owned by redevelopment companies. 

Application materials are now available on the HPD website. Owners who completed eligible construction projects before December 30, 2024 must apply by April 30, 2025. For projects completed after December 30, 2024, applications must be submitted within four months of completion. 

Next Steps and Rulemaking Process 

HPD is in the process of drafting rules governing the administration of J-51 R, with draft rules expected to be published in the first quarter of 2025. A public hearing will follow, allowing for feedback from property owners, tenants, and other stakeholders. HPD will not approve applications until the final rules are effective. 

For more information on eligibility, required documentation, and application deadlines, visit HPD’s Tax Incentives + J-51 Reform site.  

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